Question: The data below show the demand (over time) for a particular product that has to be manufactured by a particular company. So in week 6

 The data below show the demand (over time) for a particular

The data below show the demand (over time) for a particular product that has to be manufactured by a particular company. So in week 6 (for example) demand is forecast to be 275 units. Currently there are 305 units of the product in stock. This product is produced on two machines (X and Y). In any week at most one of these machines may be used. However the company may choose, if they wish, to produce nothing (so make no use of either X or Y ). Each week a machine, if used, has to be set up to produce the product. This costs 5000 for machine X, but only 3000 for machine Y. The stock holding cost associated with holding one unit of the product from the end of one week to the start of the next week is 4.70. Each unit of the product that is produced on machine X costs 22.50 and each unit of the product that is produced on machine Y costs 31.75. Formulate the problem of deciding how best to use the machines to meet forecast demand (avoiding stockouts) as an integer linear program involving some zeroone (binary) variables. (25 marks)

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